Texas 2021 - 87th Regular

Texas Senate Bill SB683 Compare Versions

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1	1	87R175 SRA-D
2	2	By: Blanco S.B. No. 683
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to defense economic readjustment zones.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 2310.001, Government Code, is amended by
10	10	amending Subdivision (7) and adding Subdivision (8) to read as
11	11	follows:
12	12	(7) "Readjustment zone" means a municipality or county
13	13	[an area] designated as a defense economic readjustment zone under
14	14	this chapter.
15	15	(8) "Veteran" has the meaning assigned by Section
16	16	2308.251.
17	17	SECTION 2. Section 2310.002, Government Code, is amended to
18	18	read as follows:
19	19	Sec. 2310.002. JURISDICTION OF MUNICIPALITY. (a) For the
20	20	purposes of this chapter, territory in the extraterritorial
21	21	jurisdiction of a municipality is considered to be in the
22	22	jurisdiction of the municipality.
23	23	(b) Notwithstanding Subsection (a), the governing body of a
24	24	county may apply to the bank for designation as a defense
25	25	readjustment project a project or activity of a qualified business
26	26	that is located within the jurisdiction of a municipality located
27	27	in the county.
28	28	(c) Before a county makes an application as provided by
29	29	Subsection (b), the applying county must enter into an interlocal
30	30	agreement with the municipality that has jurisdiction of the
31	31	territory in which the project or activity described by Subsection
32	32	(b) will be located. The interlocal agreement must specify that
33	33	either the applying county or the municipality that has
34	34	jurisdiction of the territory in which the project or activity
35	35	described by Subsection (b) will be located is the governmental
36	36	body having administration authority under Section 2310.201 and
37	37	that both the applying county and municipality approve the
38	38	application. For purposes of this subsection, a county during any
39	39	biennium may use the maximum number of designations the county is
40	40	permitted under Section 2310.306(e) within the territory described
41	41	by this subsection.
42	42	SECTION 3. Section 2310.051(b), Government Code, is amended
43	43	to read as follows:
44	44	(b) The bank shall establish criteria and procedures [for
45	45	designating a qualified area as a readjustment zone and] for
46	46	designating a defense readjustment project.
47	47	SECTION 4. Section 2310.052(b), Government Code, is amended
48	48	to read as follows:
49	49	(b) The bank must include the following information
50	50	regarding the defense readjustment zone program in the report
51	51	required by Section 489.107 [On or before December 1 of each year,
52	52	the office shall submit to the governor, the legislature, and the
53	53	Legislative Budget Board a report that]:
54	54	(1) an evaluation of [evaluates] the effectiveness of
55	55	the readjustment zone program;
56	56	(2) a description of [describes] the use of state and
57	57	local incentives under this chapter and their effect on revenue;
58	58	and
59	59	(3) suggestions for [suggests] legislation for the
60	60	program, as appropriate.
61	61	SECTION 5. Section 2310.101, Government Code, is amended to
62	62	read as follows:
63	63	Sec. 2310.101. [CRITERIA FOR] READJUSTMENT ZONE
64	64	DESIGNATION. (a) A municipality or county automatically qualifies
65	65	for designation [To be designated] as a readjustment zone if the
66	66	municipality or county is a defense-dependent community as
67	67	described by Section 2310.102 [an area must:
68	68	[(1) have a continuous boundary;
69	69	[(2) be at least one square mile but not larger than 20
70	70	square miles, excluding lakes, waterways, and transportation
71	71	arteries, of the municipality, county, or combination of
72	72	municipalities or counties nominating the area as a readjustment
73	73	zone;
74	74	[(3) be located in an adversely affected
75	75	defense-dependent community;
76	76	[(4) have at least 50 percent of its area located in an
77	77	existing or former United States Department of Defense facility;
78	78	and
79	79	[(5) be nominated as a readjustment zone by an
80	80	ordinance or order adopted by the nominating body].
81	81	(b) A municipality or county designated as [An area is not
82	82	prohibited from being included in] a readjustment zone under this
83	83	section is not prohibited from having an area of the municipality or
84	84	county [because the area is] also included in an enterprise zone
85	85	designated under Chapter 2303.
86	86	SECTION 6. Section 2310.102, Government Code, is amended to
87	87	read as follows:
88	88	Sec. 2310.102. [ADVERSELY AFFECTED] DEFENSE-DEPENDENT
89	89	COMMUNITY. A municipality or county is a [an adversely affected]
90	90	defense-dependent community if, as applicable, the municipality or
91	91	county encompasses any part of a federally owned or operated
92	92	military installation, facility, or mission that is functioning on
93	93	May 19,1997 [the bank determines that:
94	94	[(1) the municipality or county requires assistance
95	95	because of:
96	96	[(A) the proposed or actual establishment,
97	97	realignment, or closure of a defense facility;
98	98	[(B) the cancellation or termination of a United
99	99	States Department of Defense contract or the failure of the
100	100	department of defense to proceed with an approved major weapon
101	101	system program;
102	102	[(C) a publicly announced planned major
103	103	reduction in department of defense spending that would directly and
104	104	adversely affect the municipality or county; or
105	105	[(D) the closure or a significant reduction of
106	106	the operations of a defense facility as the result of a merger,
107	107	acquisition, or consolidation of a defense contractor operating the
108	108	facility; and
109	109	[(2) the municipality or county is expected to
110	110	experience, during the period between the beginning of the federal
111	111	fiscal year during which an event described by Subdivision (1) is
112	112	finally approved and the date that the event is to be substantially
113	113	completed, a direct loss of:
114	114	[(A) 2,500 or more defense worker jobs in any
115	115	area of the municipality or county that is located in an urbanized
116	116	area of a metropolitan statistical area;
117	117	[(B) 1,000 or more defense worker jobs in any
118	118	area of the municipality or county that is not located in an
119	119	urbanized area of a metropolitan statistical area; or
120	120	[(C) one percent of the civilian jobs in the
121	121	municipality or county].
122	122	SECTION 7. Section 2310.109, Government Code, is amended to
123	123	read as follows:
124	124	Sec. 2310.109. PERIOD OF DESIGNATION. A [An area may be
125	125	designated as a] readjustment zone [for a maximum of seven years.
126	126	A] designation remains in effect indefinitely so long as the
127	127	municipality or county, as applicable, continues to qualify for
128	128	designation as a readjustment zone under this chapter [until
129	129	September 1 of the final year of the designation].
130	130	SECTION 8. Section 2310.111(a), Government Code, is amended
131	131	to read as follows:
132	132	(a) The bank may remove the designation of an area
133	133	designated as a readjustment zone before September 1, 2021, if:
134	134	(1) the area no longer meets the criteria for
135	135	designation under this chapter, as this chapter existed on January
136	136	1, 2021, or by rule of the office adopted under this chapter before
137	137	September 1, 2021; or
138	138	(2) the bank determines that the governing body of the
139	139	readjustment zone has not complied with commitments made in the
140	140	ordinance or order nominating the area as a readjustment zone
141	141	before September 1, 2021.
142	142	SECTION 9. Section 2310.201, Government Code, is amended to
143	143	read as follows:
144	144	Sec. 2310.201. ADMINISTRATION BY GOVERNING BODY. (a) The
145	145	governing body of a readjustment zone is the governing body of the
146	146	municipality or county[, or the governing bodies of the combination
147	147	of municipalities or counties, that applied to have the area]
148	148	designated as a readjustment zone.
149	149	(b) The governing body with administration authority over a
150	150	defense readjustment project for which a designation is sought
151	151	under Section 2310.002(c) is determined under the terms of an
152	152	interlocal agreement required by that subsection.
153	153	SECTION 10. Section 2310.204(c), Government Code, is
154	154	amended to read as follows:
155	155	(c) The report must include for the year preceding the date
156	156	of the report:
157	157	(1) a list of local incentives for community
158	158	development available in the zone;
159	159	(2) the use of local incentives [for which the
160	160	governing body provided in the ordinance or order nominating the
161	161	readjustment zone] and the effect of those incentives on revenue;
162	162	(3) the number of businesses assisted, located, and
163	163	retained in the zone since its designation due to the existence of
164	164	the readjustment zone;
165	165	(4) a summary of all industrial revenue bonds issued
166	166	to finance projects located in the zone; and
167	167	(5) a description of all efforts made to attain
168	168	revitalization goals for the zone.
169	169	SECTION 11. Section 2310.301, Government Code, is amended
170	170	to read as follows:
171	171	Sec. 2310.301. DEFINITIONS [DEFINITION]. In this
172	172	subchapter:
173	173	(1) "New [, "new] permanent job" means a new
174	174	employment position created by a qualified business as described by
175	175	Section 2310.302 that:
176	176	(A) [(1)] has provided at least 1,820 hours of
177	177	employment a year to a qualified employee; and
178	178	(B) [(2)] is intended to exist during the period
179	179	that the qualified business is designated as a defense readjustment
180	180	project under Section 2310.306.
181	181	(2) "Retained job" means a job that:
182	182	(A) existed with a qualified business on the 91st
183	183	day before the date the business's project or activity is
184	184	designated as a defense readjustment project;
185	185	(B) has provided and will continue to provide
186	186	employment to a qualified employee of at least 1,820 hours a year;
187	187	and
188	188	(C) will be or has been an employment position
189	189	for the longer of:
190	190	(i) the duration of the project's
191	191	designation period; or
192	192	(ii) three years after the expiration date
193	193	of the claim period for receipt of a state benefit authorized by
194	194	this chapter.
195	195	SECTION 12. Section 2310.302(a), Government Code, is
196	196	amended to read as follows:
197	197	(a) A person is a qualified business if the bank, for the
198	198	purpose of state benefits under this chapter, or the governing body
199	199	of a readjustment zone, for the purpose of local benefits,
200	200	certifies that:
201	201	(1) the person is engaged in or has provided
202	202	substantial commitment to initiate the active conduct of a trade or
203	203	business in the readjustment zone; and
204	204	(2) at least 25 percent of the person's new employees
205	205	in the readjustment zone are:
206	206	(A) residents of the governing jurisdiction;
207	207	(B) economically disadvantaged individuals, as
208	208	defined by Section 2303.402(c); [or]
209	209	(C) dislocated defense workers; or
210	210	(D) veterans.
211	211	SECTION 13. Section 2310.303, Government Code, is amended
212	212	to read as follows:
213	213	Sec. 2310.303. PROHIBITION ON QUALIFIED BUSINESS
214	214	CERTIFICATION. If the bank determines that the governing body of a
215	215	readjustment zone is not complying with this chapter, the bank
216	216	shall prohibit the certification of a qualified business in the
217	217	zone until the bank determines that the governing body is complying
218	218	with this chapter. [The bank may not designate more than two defense
219	219	readjustment projects in a single readjustment zone.]
220	220	SECTION 14. Section 2310.305(b), Government Code, is
221	221	amended to read as follows:
222	222	(b) An application must:
223	223	(1) describe the procedures and efforts of the
224	224	governmental entity or entities [that applied to have the area
225	225	designated as a readjustment zone] to facilitate and encourage
226	226	participation by and negotiation among affected entities in the
227	227	zone in which the qualified business is located;
228	228	(2) contain an economic analysis of the plans of the
229	229	qualified business for expansion, revitalization, or other
230	230	activity in the readjustment zone, including:
231	231	(A) the number of anticipated new permanent jobs
232	232	the business will create during the designation period presented in
233	233	the form of a tabular listing of:
234	234	(i) the classification titles of those
235	235	jobs; and
236	236	(ii) the number of jobs and salary range for
237	237	each classification title;
238	238	(B) the anticipated number of permanent jobs the
239	239	business will retain during the designation period presented in the
240	240	form of a tabular listing of:
241	241	(i) the classification titles of those
242	242	jobs; and
243	243	(ii) the number of jobs and salary range for
244	244	each classification title;
245	245	(C) the amount of investment to be made in the
246	246	zone; [and]
247	247	(D) other information the bank requires;
248	248	(E) the number of employment positions in
249	249	existence at the qualified business site on the 91st day before the
250	250	application deadline; and
251	251	(F) if the application is for a double or triple
252	252	jumbo defense adjustment project, as defined by Section 2310.307,
253	253	an indication of which level of designation is being sought; and
254	254	(3) describe the local effort made by the governmental
255	255	entity or entities [that applied to have the area designated as a
256	256	readjustment zone], the administrative authority, if one exists,
257	257	the qualified business, and other affected entities to develop and
258	258	revitalize the zone.
259	259	SECTION 15. Section 2310.306, Government Code, is amended
260	260	by amending Subsection (a) and adding Subsection (e) to read as
261	261	follows:
262	262	(a) The bank may designate a qualified business as a defense
263	263	readjustment project only if [the bank determines that]:
264	264	(1) the bank determines that the business is a
265	265	qualified business under Section 2310.302 that is located in or has
266	266	made a substantial commitment to locate in a defense readjustment
267	267	zone;
268	268	(2) the bank determines that the governing body of the
269	269	readjustment zone making the application has demonstrated that a
270	270	high level of cooperation exists among public, private, and
271	271	neighborhood entities in the zone; [and]
272	272	(3) the bank determines that the designation will
273	273	contribute significantly to the achievement of the plans of the
274	274	governing body making the application for development and
275	275	revitalization of the zone; and
276	276	(4) the comptroller determines that revenue to the
277	277	state from the project will be greater than the sales and use tax
278	278	refund to the qualified business under Section 151.4291, Tax Code.
279	279	(e) The maximum number of defense readjustment projects
280	280	that the bank may designate for each readjustment zone during any
281	281	biennium is:
282	282	(1) six, if the readjustment zone is a municipality or
283	283	county with a population of less than 250,000; or
284	284	(2) nine, if the readjustment zone is a municipality
285	285	or county with a population of 250,000 or more.
286	286	SECTION 16. Section 2310.307, Government Code, is amended
287	287	to read as follows:
288	288	Sec. 2310.307. ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND.
289	289	(a) The [When the bank designates a business as a defense
290	290	readjustment project, the] bank shall allocate to a defense
291	291	readjustment [the] project the maximum number of new permanent jobs
292	292	or retained jobs eligible based on the amount of capital investment
293	293	made in the project, the project's designation level, and the
294	294	refund per job with a maximum refund to be included in a computation
295	295	of a tax refund for the project.
296	296	(b) A capital investment in a project of:
297	297	(1) $40,000 to $399,999 will result in a refund of up
298	298	to $2,500 per job with a maximum refund of $25,000 for the creation
299	299	or retention of 10 jobs;
300	300	(2) $400,000 to $999,999 will result in a refund of up
301	301	to $2,500 per job with a maximum refund of $62,500 for the creation
302	302	or retention of 25 jobs;
303	303	(3) $1,000,000 to $4,999,999 will result in a refund
304	304	of up to $2,500 per job with a maximum refund of $312,500 for the
305	305	creation or retention of 125 jobs;
306	306	(4) $5,000,000 or more will result in a refund of up to
307	307	$2,500 per job with a maximum refund of $1,250,000 for the creation
308	308	or retention of 500 jobs, except as provided by Subdivision (5) or
309	309	(6);
310	310	(5) $150,000,000 to $249,999,999 will result in a
311	311	refund of up to $5,000 per new permanent job with a maximum refund
312	312	of $2,500,000 for the creation of 500 new permanent jobs if the bank
313	313	designates the project as a double jumbo defense readjustment
314	314	project; or
315	315	(6) $250,000,000 or more will result in a refund of up
316	316	to $7,500 per new permanent job with a maximum refund of $3,750,000
317	317	for the creation of at least 500 new permanent jobs if the bank
318	318	designates the project as a triple jumbo defense readjustment
319	319	project.
320	320	(c) A defense readjustment project for which a commitment
321	321	for a capital investment in the range amount and the creation of the
322	322	number of new permanent jobs specified by Subsection (b)(5) is made
323	323	is considered a "double jumbo defense readjustment project" if the
324	324	project is so designated by the bank.
325	325	(d) A defense readjustment project for which a commitment
326	326	for a capital investment in the range amount and the creation of the
327	327	number of new permanent jobs specified by Subsection (b)(6) is made
328	328	is considered a "triple jumbo defense readjustment project" if the
329	329	project is so designated by the bank. [The number may not exceed
330	330	500 or a number equal to 110 percent of the number of anticipated
331	331	new permanent jobs or retained jobs specified in the application
332	332	for designation of the business as a defense readjustment project
333	333	under Section 2310.305, whichever is less.]
334	334	SECTION 17. Subchapter E, Chapter 2310, Government Code, is
335	335	amended by adding Section 2310.3071 to read as follows:
336	336	Sec. 2310.3071. MAXIMUM TAX REFUND. (a) In this section,
337	337	"double jumbo defense readjustment project" and "triple jumbo
338	338	defense readjustment project" have the meanings assigned by Section
339	339	2310.307.
340	340	(b) A defense readjustment project is eligible for a maximum
341	341	refund of $250,000 in each state fiscal year.
342	342	(c) A double jumbo defense readjustment project is eligible
343	343	for a maximum refund of $500,000 in each state fiscal year.
344	344	(d) A triple jumbo defense readjustment project is eligible
345	345	for a maximum refund of $750,000 in each state fiscal year.
346	346	SECTION 18. Section 2310.405(a), Government Code, is
347	347	amended to read as follows:
348	348	(a) To encourage economic [the] development in the
349	349	municipality [of areas designated as readjustment zones], the
350	350	governing body of a municipality designated as a readjustment zone
351	351	under this chapter, through a program, may refund its local sales
352	352	and use taxes paid by a qualified business on all taxable items
353	353	purchased for use at the qualified business site related to the
354	354	project or activity[:
355	355	[(1) the purchase, lease, or rental of equipment or
356	356	machinery for use in a readjustment zone;
357	357	[(2) the purchase of material for use in remodeling,
358	358	rehabilitating, or constructing a structure in a readjustment zone;
359	359	[(3) labor for remodeling, rehabilitating, or
360	360	constructing a structure in a readjustment zone; and
361	361	[(4) electricity and natural gas purchased and
362	362	consumed in the normal course of business in the readjustment
363	363	zone].
364	364	SECTION 19. Section 2310.409, Government Code, is amended
365	365	to read as follows:
366	366	Sec. 2310.409. OTHER LOCAL INCENTIVES. (a) The governing
367	367	body of a municipality or county that is the governing body of a
368	368	readjustment zone may:
369	369	(1) defer compliance in the zone with the subdivision
370	370	and development ordinances or rules, other than those relating to
371	371	streets and roads or sewer or water services, of the municipality or
372	372	county, as appropriate;
373	373	(2) [give priority to the zone for the receipt of:
374	374	[(A) community development block grant money;
375	375	[(B) industrial revenue bonds; or
376	376	[(C) funds received for job training;
377	377	[(3) adopt and implement a plan for police protection
378	378	in the zone;
379	379	[(4)] amend the zoning ordinances of the municipality
380	380	or county, as appropriate, to promote economic development in the
381	381	zone;
382	382	(3) [(5)] establish permitting preferences for
383	383	businesses in the zone;
384	384	(4) [(6)] establish simplified, accelerated, or other
385	385	special permit procedures for businesses in the zone;
386	386	(5) [(7)] waive development fees for projects in the
387	387	zone;
388	388	(6) [(8)] create a local readjustment zone fund for
389	389	funding bonds or other programs or activities to develop or
390	390	revitalize the zone;
391	391	(7) [(9)] for qualified businesses in the zone, reduce
392	392	rates charged by:
393	393	(A) a utility owned by the municipality or
394	394	county, as appropriate; or
395	395	(B) a cooperative corporation or utility owned by
396	396	private investors, subject to the requirements of Subsection (b);
397	397	(8) [(10)] in issuing housing finance bonds, give
398	398	priority to persons or projects in the zone;
399	399	(9) [(11)] in providing services, give priority to
400	400	local economic development, educational, job training, or
401	401	transportation programs that benefit the zone; or
402	402	(10) [(12)] sell real property owned by the
403	403	municipality or county, as appropriate, and located in the
404	404	readjustment zone in accordance with Section 2310.410.
405	405	(b) A reduction in utility rates under Subsection (a)(7)(B)
406	406	[(a)(9)(B)] is subject to the agreement of the affected utility and
407	407	the approval of the appropriate regulatory authority under Title 2,
408	408	Utilities Code. The rates may be reduced up to but not more than
409	409	five percent below the lowest rate allowable for that customer
410	410	class. In making its determination under this section, the
411	411	regulatory authority shall consider revitalization goals for the
412	412	readjustment zone. In setting the rates of the utility the
413	413	appropriate regulatory authority shall allow the utility to recover
414	414	the amount of the reduction.
415	415	SECTION 20. Section 151.4291, Tax Code, is amended by
416	416	amending Subsections (a), (b), (c), and (e) and adding Subsection
417	417	(i) to read as follows:
418	418	(a) A defense readjustment project is eligible for a refund
419	419	in the amount provided by this section of the taxes imposed by this
420	420	chapter on purchases of all taxable items purchased for use at the
421	421	qualified business site related to the project or activity[:
422	422	[(1) equipment or machinery sold to a defense
423	423	readjustment project for use in a readjustment zone;
424	424	[(2) building materials sold to a defense readjustment
425	425	project for use in remodeling, rehabilitating, or constructing a
426	426	structure in a readjustment zone;
427	427	[(3) labor for remodeling, rehabilitating, or
428	428	constructing a structure by a defense readjustment project in a
429	429	readjustment zone; and
430	430	[(4) electricity and natural gas purchased and
431	431	consumed in the normal course of business in the readjustment
432	432	zone].
433	433	(b) Subject to the limitations provided by Subsection (c)
434	434	[of this section], a defense readjustment project qualifies for a
435	435	refund of taxes under this section based on the amount of capital
436	436	investment made at the qualified business site, the project's
437	437	designation level, and the refund per job with a maximum refund to
438	438	be included in a computation of a tax refund for the project. A
439	439	capital investment at the qualified business site of:
440	440	(1) $40,000 to $399,999 will result in a refund of up
441	441	to $2,500 per job with a maximum refund of $25,000 for the creation
442	442	or retention of 10 jobs;
443	443	(2) $400,000 to $999,999 will result in a refund of up
444	444	to $2,500 per job with a maximum refund of $62,500 for the creation
445	445	or retention of 25 jobs;
446	446	(3) $1,000,000 to $4,999,999 will result in a refund
447	447	of up to $2,500 per job with a maximum refund of $312,500 for the
448	448	creation or retention of 125 jobs;
449	449	(4) $5,000,000 or more will result in a refund of up to
450	450	$2,500 per job with a maximum refund of $1,250,000 for the creation
451	451	or retention of 500 jobs, except as provided by Subdivision (5) or
452	452	(6);
453	453	(5) $150,000,000 to $249,999,999 will result in a
454	454	refund of up to $5,000 per new permanent job with a maximum refund
455	455	of $2,500,000 for the creation of 500 new permanent jobs if the
456	456	Texas Economic Development Bank designates the project as a double
457	457	jumbo defense readjustment project; or
458	458	(6) $250,000,000 or more will result in a refund of up
459	459	to $7,500 per new permanent job with a maximum refund of $3,750,000
460	460	for the creation of at least 500 new permanent jobs if the Texas
461	461	Economic Development Bank designates the project as a triple jumbo
462	462	defense readjustment project [of $2,500 for each new permanent job
463	463	or job that has been retained by the defense readjustment project
464	464	for a qualified employee].
465	465	(c) The total amount of tax refund that a defense
466	466	readjustment project may apply for in a state fiscal year may not
467	467	exceed $250,000, at not more than $2,500 per job. The total amount
468	468	of tax refund that a double jumbo defense readjustment project may
469	469	apply for in a state fiscal year may not exceed $500,000, at not
470	470	more than $5,000 per new permanent job. The total amount of tax
471	471	refund that a triple jumbo defense readjustment project may apply
472	472	for in a state fiscal year may not exceed $750,000, at not more than
473	473	$7,500 per new permanent job. If a defense readjustment project,
474	474	double jumbo defense readjustment project, or triple jumbo defense
475	475	readjustment project qualifies in a state fiscal year for a refund
476	476	of taxes in an amount in excess of the applicable limitation
477	477	provided by this subsection, it may apply for a refund of those
478	478	taxes in a subsequent year, subject to the applicable limitation
479	479	for each year. The total amount that may be refunded to:
480	480	(1) a defense readjustment project under this section
481	481	may not exceed the amount determined by multiplying $250,000 by the
482	482	number of state fiscal years during which the defense readjustment
483	483	project created or retained one or more jobs for qualified
484	484	employees;
485	485	(2) a double jumbo defense readjustment project under
486	486	this section may not exceed the amount determined by multiplying
487	487	$500,000 by the number of state fiscal years during which the double
488	488	jumbo defense readjustment project created one or more new
489	489	permanent jobs for qualified employees; or
490	490	(3) a triple jumbo defense readjustment project under
491	491	this section may not exceed the amount determined by multiplying
492	492	$750,000 by the number of state fiscal years during which the triple
493	493	jumbo defense readjustment project created one or more new
494	494	permanent jobs for qualified employees. [If a defense readjustment
495	495	project qualifies in a state fiscal year for a refund of taxes in an
496	496	amount in excess of the limitation provided by this subsection, it
497	497	may apply for a refund of those taxes in a subsequent year, subject
498	498	to the $250,000 limitation for each year. However, a defense
499	499	readjustment project may not apply for a refund under this section
500	500	after the end of the state fiscal year immediately following the
501	501	state fiscal year in which the defense readjustment project's
502	502	designation as a defense readjustment project expires or is
503	503	removed. The total amount that may be refunded to a defense
504	504	readjustment project under this section may not exceed the amount
505	505	determined by multiplying $250,000 by the number of state fiscal
506	506	years during which the defense readjustment project created one or
507	507	more jobs for qualified employees.]
508	508	(e) In this section:
509	509	(1) "Defense readjustment project" means a person
510	510	designated by the Texas Economic Development Bank as a defense
511	511	readjustment project under Chapter 2310, Government Code.
512	512	(2) "Readjustment zone" and "qualified employee" have
513	513	the meanings assigned to those terms by Section 2310.001,
514	514	Government Code.
515	515	(3) "New permanent job" means a new employment
516	516	position created by a qualified business as described by Section
517	517	2310.302, Government Code, that:
518	518	(A) has provided at least 1,820 hours of
519	519	employment a year to a qualified employee; and
520	520	(B) is intended to exist during the period that
521	521	the qualified business is designated as a defense readjustment
522	522	project under Chapter 2310, Government Code.
523	523	(4) "Retained job" has the meaning assigned by Section
524	524	2310.301, Government Code.
525	525	(5) "Double jumbo defense readjustment project" and
526	526	"triple jumbo defense readjustment project" have the meanings
527	527	assigned by Section 2310.307, Government Code.
528	528	(i) As provided by Subsection (c), a double jumbo defense
529	529	readjustment project is eligible for a maximum refund of $500,000
530	530	and a triple jumbo defense readjustment project is eligible for a
531	531	maximum refund of $750,000 in each state fiscal year.
532	532	SECTION 21. The following provisions of the Government Code
533	533	are repealed:
534	534	(1) Section 2310.001(4);
535	535	(2) Section 2310.053(d);
536	536	(3) Section 2310.103;
537	537	(4) Section 2310.104;
538	538	(5) Section 2310.105;
539	539	(6) Section 2310.106;
540	540	(7) Section 2310.107;
541	541	(8) Section 2310.108;
542	542	(9) Section 2310.110; and
543	543	(10) Section 2310.407.
544	544	SECTION 22. The changes in law made by this Act to Chapter
545	545	2310, Government Code, apply only to an application for a
546	546	designation of a project or activity under the defense economic
547	547	readjustment zone program under Chapter 2310, Government Code, as
548	548	amended by this Act, that is filed on or after the effective date of
549	549	this Act. An application for designation of a project or activity
550	550	under the defense economic readjustment zone program that is filed
551	551	before the effective date of this Act is governed by the law in
552	552	effect on the date the application was filed, and the former law is
553	553	continued in effect for that purpose.
554	554	SECTION 23. The changes in law made by this Act to Section
555	555	151.4291, Tax Code, apply only to an application for a tax refund
556	556	made on or after the effective date of this Act. An application for
557	557	a tax refund made before the effective date of this Act is governed
558	558	by the law in effect on the date the application was made, and the
559	559	former law is continued in effect for that purpose.
560	560	SECTION 24. This Act takes effect September 1, 2021.